Company Report: Lehman Brothers, Yahoo!, Ahold and Certicom

Publish date:

Financial stocks were whacked particularly hard during today's trading blood bath, after the a stronger-than-expected CPI report peaked fears of a substantial Fed rate hike.

Among the biggest losers on the Big Board were

Lehman Brothers


down 17 3/8, or 18.7%, to 75 1/2 and

American Express

(AXP) - Get Report

dropped 12, or 8.2%, to 134.


American Stock Exchange Broker/Dealer Index

tumbled 12.7%, while the

Philadelphia Stock Exchange/KBW Bank Index

was down 7.1%.

The grass wasn't any greener on the other side, as the tech-filled Internet Index

slid 100 to 712.95.



slid 20 1/8, or 14.8%, to 116,



dropped 14 3/8, or 21.4%, to 52 1/16 and


(BVSN) - Get Report

shed 10 3/8, or 25.9%, to 29 3/4.

Mergers, acquisitions and joint ventures



slipped 5/8 to 25 after it said it bought 51% of e-retailer



for $73 million. Peapod gained 11/16, or 27.5%, to 3 3/16.


(HON) - Get Report

fell 1 5/16 to 54 1/8 after its

Thermal Systems

business enterprise said it is buying Britain's

Serck Heat Transfer

for an undisclosed amount. Serck is a supplier of heat transfer equipment for cooling engines, transmissions, turbines, compressors and processes in the marine, power generation, construction and automotive industries.

Lehman Brothers

raised Honeywell's 12-month price target to 100 from 80.



, a playground equipment maker, rose 2 3/4, or 40.7%, to 9 1/2 after it said it is being bought out by an investment group for $10.10 a share in cash.

Earnings/revenue reports and previews


Earnings estimates from First Call; new highs and lows on a closing basis unless otherwise specified. Earnings reported on a diluted basis unless otherwise specified.


Boise Cascade Office Products


was unchanged at 16 3/8 after it posted first-quarter earnings of 31 cents, two cents shy of the two-analyst estimate of 33 cents.



lost 1/2 to 51 1/2 after it

reported first-quarter earnings of 41 cents a share, in line with the 22-analyst estimate and up from the year-ago 31-cent profit. The PC seller said that a 27% increase sales in its consumer computer unit made up for a slowdown in its business division, which suffered a 19% loss in sales.

According to CFO John Todd, the business division's sales have shown progress every month since its January low. Todd told investors that he sees a seasonal drop in sales during the second quarter but assured that Gateway is on track to post second-quarter earnings in line with the 21-analyst estimate of 36 cents a share and the fiscal 2000 22-analyst estimate of $1.83 a share.

Merrill Lynch

upgraded Gateway to intermediate-term accumulate from intermediate-term neutral and maintained its long-term accumulate rating on the computer maker.

Global Marine


fell 11/16 to 21 3/8 after it reported first-quarter earnings of 7 cents a share, a penny better than the 31-analyst estimate but down from the year-ago earnings of 21 cents.



, the world's largest car rental company, lost 3 7/16, or 9.2%, to 33 13/16 after it reported first-quarter earnings of 52 cents a share, 4 cents ahead of the nine-analyst estimate and up from the year-ago 45 cents. Hertz's revenue for the quarter totaled $1.135 billion in the first quarter, a jump of 9.9% from the year-ago $1.033 billion.

Hudson United Bancorp


slipped 3/8 to 20 1/8 after it reported first-quarter earnings of 58 cents a share, below the single-analyst estimate of 60 cents but up from the year-ago 53 cents a share.

Hussman International


inched up 11/16, or 5.2%, to 13 13/16 after it said it expects to slightly exceed the first-quarter estimate of 12 cents.

National City


lost 1 13/16, or 9%, to 18 5/16 after it posted earnings of 53 cents a share, below the 20-analyst estimate of 50 cents and in line with the year-ago earnings.



inched up 5/8 to 41 1/16 after it posted first-quarter earnings from continuing operations of 45 cents a share, above the two-analyst estimate of 40 cents and up from the year-ago operating earnings of 35 cents.

Quest Diagnostics

(DGX) - Get Report

rose 1 13/16 to 44 1/2 after it said it expects first-quarter earnings to be about 50% above analyst estimates of 24 cents a share and 2000 year earnings to be about 20% above estimates of $1.47 a share. Merrill Lynch upgraded the stock to an intermediate buy from accumulate and upped its price target to 56 from a range of 42 to 43.

Sun Microsystems

(SUNW) - Get Report

inched up 1/4 to 78 after it

posted third-quarter earnings of 26 cents a share, topping the 20-analyst estimate of 23 cents and the year-ago report of an 18-cent profit. CEO Scott McNealy attributed the strong results to a boost in market share after cruising through Y2K woes to see an rise in business during its second quarter.

During the quarter, Sun saw revenue shoot up 35% to hit $4 billion. According to CFO Michael Lehman, the company holds more than $5 billion in cash and securities.

Lehman Brothers

raised its earnings estimate for fiscal 2000 on Sun to 96 cents from 91 cents.

Prudential Securities

upgraded shares of Sun Microsystems,





, the newspaper and media giant, which is buying

Times Mirror


, posted first-quarter earnings, excluding items, of 32 cents a share, in line with the 10-analyst estimate and up from the year-ago 27 cents. Tribune lost 3/16 to 37 11/16 and Times Mirror fell 3/16 to 94.

Universal Access


lost 1 3/8, or 5.4%, to 24 1/8 despite saying it expects to report first-quarter revenues of $7.1 million to $7.3 million, exceeding expectations of $6 million.

Offerings and stock actions



, citing poor market conditions, has withdrawn a planned common share offering. Certicom lost 36 27/32, or 44.9%, to 45 1/4.

Crown Media


said it pushed back its 12.5 million-share IPO because of the market volatility.



shares slid 6.6% to 71 61/64 today after the company said it set a 4-for-1 stock split..


(F) - Get Report

inched up 1/2 to 54 15/16 after it announced that its board approved several moves designed to make shareholders smile, including

spinning off its automotive components and systems unit


, whereby Ford will distribute its 100% interest in Visteon to Ford common and Class-B shareholders.

Shareholders will receive a distribution of Visteon stock based on the number of Ford shares they own and the total number of Ford shares outstanding on the distribution record date. Ford said Visteon generates $19 billion in annual revenue.

Ford's board also approved a plan under which Ford stockholders will exchange their current Ford common and Class-B shares for new Ford common and Class-B shares, and shareholders will have the right to receive either $20 in cash per share or new Ford shares of equivalent value. Ford said the total cash distribution will be limited to $10 billion.

After the close,



, an e-commerce software company, withdrew its plans for a 3.75 million-share secondary offering citing the stock market's recent volatility.



said that it would withdraw its 4 million-share IPO due to market volatility.

Chase H&Q

is serving as the deal's lead underwriter.

Sequoia Software


lowered the expected price range of its 4.2 million-share IPO to $9-$11 a share, from $11-$13 a share.

Votorantim Celulose e Papel


was inching up 1/8 after being priced at $15 per ADR, under the estimated range of $16.15. Lead underwriter

Merrill Lynch

priced 7.92 million ADRs. Votorantim is a Brazilian paper and pulp company. Each ADR represents 500 preferred shares.



, an Internet consulting firm, withdrew its registration for an initial public offering of stock, but could still issue in the future depending on market conditions, it said. Zefer had planned to offer 4 million shares at a price of $11-$13 per share.

Analyst actions

ADC Telecom

(ADCT) - Get Report

: UP to strong buy from buy at

SG Cowen

. ADC Telecom slipped 4 3/16, or 8%, to 47 11/16.


(AMTD) - Get Report

: UP to strong buy from buy at

U.S. Bancorp Piper Jaffrey

. Ameritrade skidded 3 3/16, or 18.2%, to 14 1/4.

Chase Hambrecht & Quist

rolled out coverage of several electronic companies including


(CLS) - Get Report



(PLXS) - Get Report


SCI Systems

(SCI) - Get Report


Jabil Circuit

(JBL) - Get Report

stamping all with buy ratings.

Celestica fell 5 5/8, or 12%, to 41 and Plexus sank 7 15/16, or 12.7%, to 54 9/16, while SCI Systems lost 3 1/8, or 6.6%, to 43 5/8. Jabil Circuit skidded 2 1/16, or 6%, to 32 1/4.


(DHR) - Get Report

: INITIATED market outperformer at

Goldman Sachs

. Danaher declined 3 5/8, or 7%, to 48 1/16.


(GPS) - Get Report


Abercrombie & Fitch

(ANF) - Get Report

: DOWN to buy from strong buy at

US Bancorp Piper Jaffrey

. Gap's price target was lowered to 48 from 56. Gap slipped 2 13/16, or 6.7%, to 38 7/8 and Abercrombie shed 5/8, or 5.1%, to 11 5/8.

Goodyear Tire

(GT) - Get Report

: UP to strong buy from hold at

Warburg Dillon Read

. Goodyear slid 2 5/16, or 7.7%, to 27 9/16.

Lands' End

(LE) - Get Report

: DOWN to hold from buy at

Credit Suisse First Boston

. Lands' End sank 7, or 12.1%, to 50 5/8.

Donaldson Lufkin & Jenrette

analyst Eric Ross initiated coverage of five Internet consulting companies, including













Diamond Technology



Diamond Technology was started as the company's top pick. Diamond Technology slipped 2 3/16 to 53 1/16.

MarchFirst, Organic, Scient and Viant were all started at buy. MarchFirst declined 2 5/8, or 10.9%, to 21 5/16 and Organic shed 1 3/8, or 10.3%, to 11 7/8, while Scient stumbled 2 3/4, or 6.5%, to 39 1/2. Viant slipped 1/4 to 20 13/16.

Partner Communications

(PTNR) - Get Report

: NEW strong buy at

Morgan Stanley Dean Witter

. Partner Communications sank 1 5/16, or 11.1%, to 10 7/16.



:DOWN to market perform from strong buy at

Thomas Weisel

by analyst Perry Boyle Jr. Resource lost 3, or 66.4%, to 1.

Starwood Hotels & Resorts


: REINSTATED as a buy with a target price of 38 at Merrill Lynch;

Four Seasons Hotel

REINSTATES with an intermediate accumulate, long-term buy rating. Starwood Hotels skidded 2 5/8, or 9.1%, to 25 15/16 and Four Seasons slid 1 7/16 to 45 7/16.

Weatherford International

(WFT) - Get Report

: NEW buy at

Deutsche Banc Alex. Brown

; price target of 64. Weatherford declined 11/16 to 55 15/16.



(MSFT) - Get Report

acknowledged that some of its Internet software carried a secret password that could be used to gain unlawful access to hundreds of thousands of Internet sites worldwide,

The Wall Street Journal


The password is a "phrase deriding their rivals at Netscape as 'weenies,'" according to the story. A Microsoft security manager said the backdoor password goes against its policy and said it is a firing offense for the as-yet unidentified employees. Microsoft skidded 4 13/16, or 6%, to 74 7/16.

After the close,



said its auditor would voice concerns on whether the company can sustain profitable operations. PictureTel, which makes videoconferencing equipment, said


found that it can't depend on the company's future revenue outlook that is derived from new products and services that it plans to launch in the second quarter. The company has teamed up with


(INTC) - Get Report

to develop new products, which it hopes will help produce fiscal 2000 revenues.



said it may eliminate 850 jobs, or nearly 2% of its total workforce of 46,000 when it transfers its cell-phone production operations from Georgia to its facilities in Guadalajara, Mexico. Solectron stumbled 2 1/8, or 5.1%, to 38 7/8.